On 9 February 2011 (after period end), Evotec signed a definitive agreement to acquire all shares in Kinaxo Biotechnologies GmbH, a Munich-based drug discovery alliance company supporting the development of targeted drugs. The acquisition complements Evotec integrated drug discovery offering, adding proprietary technology for response prediction and early decisions on drug efficacy and safety, especially in the key area of oncology. It significantly strengthened the Company's discovery offering to customers with this unique value proposition. The Kinaxo business is slightly profitable and strongly growing with an expected revenue contribution of € 2.0m in 2011.
A most visible sign of Evotec's commitment to highly innovative processes presents the recently signed collaboration with Harvard University and the Howard Hughes Medical Institute (HHMI), which is focused on beta cell technologies in diabetes (after period end).
5. Guidance 2011
Revenue growth of more than 15%, improved operating result before impairment and liquidity of approximately € 65mIn 2011, total Group revenues are expected to grow by more than 15% to € 64 to € 66m. This assumption is supported by the strong March 2011 order book of € 40m (+43%, 2010: € 28m), expected new contracts and contract extensions as well as the achievement of certain milestones. Evotec expects research & development (R&D) expenses to increase in 2011 from 2010 levels. The Company will focus on key programmes and targets to invest especially in the fields of innovation in metabolic diseases and regenerative medicine. In total approximately € 10m will be spent in R&D in 2011. Even on this basis, Evotec's Group operating result before impairment is expected to improve over 2010. In 2011, Evotec will invest to support its long-term growth aspirations. More than € 8m are planned to be invested in the long-term upgrading of the Evotec capacities. One very visible sign for this strategy will be the move into a new high-tech facility in Hamburg "Manfred-Eigen-Campus", which will be the center for Evotec's screening and early biology work.